May 6, 2005

Vietnamese seafood exports still strong despite fall in shipments to US

Vietnam's seafood exports rose during the first four months of the year, despite ongoing trading difficulties with the US.

Statistics from the Ministry of Fisheries, show US$190 million earned from seafood exports in April, an 8.9 percent increase from the same trading period last year.

The Ministry said that fish accounted for nearly 50 percent, or 68,800 tonnes, of exports in April, while shrimp and cuttlefish remained the second and third largest export categories respectively, each accounting for 34,900 and 14,400 tonnes.

Japan remained the largest export destination for Vietnamese seafood, raking in US$146 million during the first quarter, while those to the US and EU each had turnovers of US$121.5 million and US$69.4 million respectively.

Despite remaining a major export destination for Vietnam, shipments to the US have fallen by 14.4 percent compared to the previous year, a substantial decline which is the result of changes in US customs regulations.

In order to gain entry into the US market, all Vietnamese exporters are now required to pay bonds to US insurance companies, which then guarantee that anti-dumping duties are paid to the US Customs Service.

Many if Vietnam's small and medium shrimp exporters can hardly afford the large bond payments. The Ministry has suggested alleviating this by shifting focus to sales of other seafood products, and to further improve trade relationships with the Middle East, Central and Eastern Europe, Africa and also South America.